Question
You have following two mutually exclusive projects to invest. Year Cashflow of Project X Cashflow of Project XY 0 - 1,25,000 - 1,25,000 1 25,000
You have following two mutually exclusive projects to invest.
| Year | Cashflow of Project X | Cashflow of Project XY |
| 0 | - 1,25,000 | - 1,25,000 |
| 1 | 25,000 | 35,000 |
| 2 | 45,000 | 25,000 |
| 3 | 31,000 | 30,000 |
| 4 | 55,000 | 25,000 |
| 5 | 44,000 | 40,000 |
Calculate payback period, NPV and IRR of these two projects. Which project do you prefer?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Bond Markets Analysis and Strategies
Authors: Frank J.Fabozzi
9th edition
133796779, 978-0133796773
